As investors anticipate more information about inflation, the 10-year Treasury yield increases.

On Thursday, the yields of U.S. Treasury bonds increased slightly as investors processed the most recent inflation data and anticipated additional information.

The 10-year Treasury yield increased by over 3 basis points to 4.304%, while the 2-year Treasury yield jumped by more than 2 basis points to 4.18%.

Yields and prices move in opposite directions, with one basis point equal to 0.01%.

On Thursday, investors will receive economic data, including the producer price index report for November and the weekly jobless claims report. Economists predict a 0.2% increase in the producer price index on a monthly basis.

The Bureau of Labor Statistics published the consumer price index report for November on Wednesday, revealing a 12-month inflation rate of 2.7% and a 0.3% increase on a monthly basis.

The annual core inflation rate, which does not include food and energy costs, was 3.3%, while the monthly rate was 0.3%. These figures were consistent with the Dow Jones consensus forecasts.

The Fed is expected to make a rate cut decision at their upcoming policy meeting, with a strong likelihood of cutting rates further, but potentially skipping a January cut to assess the impact of previous cuts on the economy.

According to the CME FedWatch tool, traders are anticipating a nearly 99% chance of a quarter-point rate cut.

Whitney Watson, global co-head and co-chief investment officer for fixed income at Goldman Sachs Asset Management, stated that in-line core inflation clears the way for a rate cut at next week's Federal Open Market Committee meeting.

"The Fed will continue with the disinflation process and gradually ease monetary policy in the new year, according to the Fed's analysis of today's data."

Central bank officials will not be making any public comments about the rate cut decision during the blackout period, which prohibits them from speaking publicly before a meeting.